What the CLARITY Act Is Actually Trying to Clarify in Crypto Markets

"The CLARITY Act aims to address years of regulatory uncertainty with a structured framework that clearly defines digital assets, intermediary roles and disclosure obligations. It places most spot trading of qualifying tokens under CFTC oversight, while keeping the SEC responsible for primary offerings, disclosures and investor protections. The bill focuses on regulating activities as much as assets, setting registration and conduct standards for exchanges, brokers and dealers to strengthen market integrity and transparency."

"The CLARITY Act (Digital Asset Market Clarity Act of 2025) aims to break the industry's legislative logjam through a two-pronged approach that defines what digital assets are and delegates oversight based on how they function in the marketplace. The legislation moves beyond ad hoc enforcement and instead proposes a comprehensive framework for asset classification, intermediary roles and mandatory disclosures. This article explains what the CLARITY Act is and why it matters, outlines its objectives and examines how it proposes to govern stablecoins."

The CLARITY Act creates a two-pronged regulatory framework that defines digital assets by function and assigns oversight accordingly. Most spot trading of qualifying tokens falls under CFTC jurisdiction, while the SEC retains authority over primary offerings, disclosures and investor protections. The bill sets registration and conduct requirements for exchanges, brokers and dealers to improve market integrity, transparency and custody practices. The CLARITY Act complements the GENIUS Act on stablecoin regulation, applying to disclosures and reward-related features tied to stablecoin use. The proposal addresses regulatory uncertainty, introduces the mature blockchain concept and faces opposition concerning scope and overlap with existing law.

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